{"id":165,"date":"2009-07-13T10:06:13","date_gmt":"2009-07-13T14:06:13","guid":{"rendered":"https:\/\/nybankruptcy.net\/main\/?p=165"},"modified":"2019-05-07T03:33:37","modified_gmt":"2019-05-07T03:33:37","slug":"why-did-lenny-dykstra-file-for-chapter-11","status":"publish","type":"post","link":"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/","title":{"rendered":"Why did Lenny Dykstra file for Chapter 11?"},"content":{"rendered":"

\"LDykstra\"You’ve probably heard by now that former New York Met star Lenny Dykstra<\/strong> (aka “Nails”) filed for Chapter 11 bankruptcy and all about his financial woes stemming from litigation, divorce, foreclosure, etc.<\/p>\n

But why Chapter 11?\u00a0 Isn’t Chapter 11 bankruptcy for companies?\u00a0 And don’t individuals usually file for Chapter 7 liquidation?\u00a0 Or maybe for Chapter 13 (repayment plan) if their income is above the median income for their state (aka the “means test”)?<\/p>\n

What makes Lenny Dykstra so special that he filed for Chapter 11 (other than the fact that he was once the runner-up to Barry Bonds in MVP voting and also in the business of giving financial advice to other athletes)?<\/p>\n

Individuals can in fact file for Chapter 11 bankruptcy.\u00a0 In Lenny Dykstra’s case, it’s a good example a situation where it may make sense for an individual to file for Chapter 11 and highlights some of the advantages of doing so.<\/p>\n

The primary reason for filing for Chapter 11 is that he has business interests that he wants to protect and continue to operate.\u00a0 In particular, he apparently plans to continue the launch of Player’s Club<\/em>, a monthly magazine for professional athletes.\u00a0 He said in a recent CNBC interview<\/a> that\u00a0 his Chapter 11 bankruptcy is about “reorganization, not bankruptcy.\u00a0 I’m not bankrupt.”\u00a0 In a Chapter 7 liquidation, by contrast, all of his assets would simply be liquidated and sold off to pay of his creditors.\u00a0 In exchange he would receive a clean slate following a Chapter 7 bankruptcy filing.<\/p>\n

Chapter 7 would have also required the appointment of a trustee.\u00a0 (Chapter 11 does not have such a requirement.)\u00a0 And investigation of Dykstra’s finances by a trustee may have proved embarrassing.\u00a0 This was more than likely a strong incentive for avoiding Chapter 7 on Dykstra’s part, particularly given the fact that this past April he told ESPN that he had $60 million in assets.<\/p>\n

What about the means test under the 2005 bankruptcy laws?\u00a0 Would Dykstra have been eligible to file for Chapter 7?\u00a0 Yes, most likely he would have been eligible.\u00a0 Most of his debts were business debts, not consumer debts.\u00a0 The means test only applies to individuals whose debts are primarily (i.e., over 50%) consumer debts as opposed to business debts.<\/p>\n

And what about Chapter 13?\u00a0 Would that have been an option for Dykstra?\u00a0 No, it appears from his bankruptcy filing that he would not have been eligible to file for Chapter 13, even if wanted to.\u00a0 An individual with both consumer and business debts is permitted to file for Chapter 13.\u00a0 However, under Chapter 13, the allowable debt limits are a little over $300K for unsecured debt and a little over $1 million for secured debts.\u00a0 If a debtor is over the limit in either category, then he or she is not eligible to file for Chapter 13.\u00a0 In Dykstra’s case, his bankruptcy petition listed his liabilities in a range of $10 million to $50 million, well over the limit.<\/p>\n

It’s always disconcerting to see people who may be our heroes in one arena struggle and fail in other parts of life.\u00a0 But the reality is that financial management is not easy, especially in this day and age.\u00a0 That’s why we’re fortunate that the U.S. legal system in the U.S. bankruptcy as an option and as a social safety net that enables risk-taking and innovation.<\/p>\n

If you are facing financial hardship in New York and feel like you’re caught in a run-down, you do have options.\u00a0 Please contact me<\/a> for a free initial consultation to discuss your situation and learn more about Chapter 11 Bankruptcy Attorney Brooklyn NY<\/a>\u00a0<\/a>well as other options.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

You’ve probably heard by now that former New York Met star Lenny Dykstra (aka “Nails”) filed for Chapter 11 bankruptcy and all about his financial woes stemming from litigation, divorce, foreclosure, etc. But why Chapter 11?\u00a0 Isn’t Chapter 11 bankruptcy for companies?\u00a0 And don’t individuals usually file for Chapter 7 liquidation?\u00a0 Or maybe for Chapter …<\/p>\n

Why did Lenny Dykstra file for Chapter 11?<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[16,26,22,7,10,33],"tags":[21,70,71,29,30,51],"acf":[],"yoast_head":"\nWhy did Lenny Dykstra file for Chapter 11 Bankruptcy Lawyer Brooklyn NY<\/title>\n<meta name=\"description\" content=\"You've probably heard by now that former New York Met star Lenny Dykstra (aka "Nails") filed for Chapter 11 bankruptcy and all about his financial woes\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why did Lenny Dykstra file for Chapter 11 Bankruptcy Lawyer Brooklyn NY\" \/>\n<meta property=\"og:description\" content=\"You've probably heard by now that former New York Met star Lenny Dykstra (aka "Nails") filed for Chapter 11 bankruptcy and all about his financial woes\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/\" \/>\n<meta property=\"og:site_name\" content=\"Bankruptcy Attorney in Brooklyn, New York | Rosenberg Musso Weiner\" \/>\n<meta property=\"article:published_time\" content=\"2009-07-13T14:06:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-05-07T03:33:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/nybankruptcy.net\/main\/wp-content\/uploads\/2009\/07\/ldykstra.jpg\" \/>\n<meta name=\"author\" content=\"Matt Leichter\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Matt Leichter\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/\"},\"author\":{\"name\":\"Matt Leichter\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/75d08d648836eaa13b64bf21273bf4e7\"},\"headline\":\"Why did Lenny Dykstra file for Chapter 11?\",\"datePublished\":\"2009-07-13T14:06:13+00:00\",\"dateModified\":\"2019-05-07T03:33:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/\"},\"wordCount\":589,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/#organization\"},\"keywords\":[\"Brooklyn Bankruptcy\",\"Celebrity Bankruptcy\",\"Chapter 11\",\"Chapter 13\",\"Chapter 7\",\"New York Bankruptcy\"],\"articleSection\":[\"Bankruptcy\",\"Chapter 13 Bankruptcy\",\"Chapter 7 Bankruptcy\",\"Debt\",\"Foreclosure\",\"Means Test\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/\",\"url\":\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/\",\"name\":\"Why did Lenny Dykstra file for Chapter 11 Bankruptcy Lawyer Brooklyn NY\",\"isPartOf\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/#website\"},\"datePublished\":\"2009-07-13T14:06:13+00:00\",\"dateModified\":\"2019-05-07T03:33:37+00:00\",\"description\":\"You've probably heard by now that former New York Met star Lenny Dykstra (aka \\\"Nails\\\") filed for Chapter 11 bankruptcy and all about his financial woes\",\"breadcrumb\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/nybankruptcy.net\/main\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Why did Lenny Dykstra file for Chapter 11?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#website\",\"url\":\"https:\/\/nybankruptcy.net\/main\/\",\"name\":\"Bankruptcy Attorney in Brooklyn, New York | Rosenberg Musso Weiner\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/nybankruptcy.net\/main\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#organization\",\"name\":\"Rosenberg, Musso & Weiner, LLP\",\"url\":\"https:\/\/nybankruptcy.net\/main\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/nybankruptcy.net\/main\/wp-content\/uploads\/2018\/06\/logo.png\",\"contentUrl\":\"https:\/\/nybankruptcy.net\/main\/wp-content\/uploads\/2018\/06\/logo.png\",\"width\":124,\"height\":108,\"caption\":\"Rosenberg, Musso & Weiner, LLP\"},\"image\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/75d08d648836eaa13b64bf21273bf4e7\",\"name\":\"Matt Leichter\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/bd20b564e1f526a569ac8b1fc9ef74db?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/bd20b564e1f526a569ac8b1fc9ef74db?s=96&d=mm&r=g\",\"caption\":\"Matt Leichter\"},\"url\":\"https:\/\/nybankruptcy.net\/main\/author\/mleichter\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Why did Lenny Dykstra file for Chapter 11 Bankruptcy Lawyer Brooklyn NY","description":"You've probably heard by now that former New York Met star Lenny Dykstra (aka \"Nails\") filed for Chapter 11 bankruptcy and all about his financial woes","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/","og_locale":"en_US","og_type":"article","og_title":"Why did Lenny Dykstra file for Chapter 11 Bankruptcy Lawyer Brooklyn NY","og_description":"You've probably heard by now that former New York Met star Lenny Dykstra (aka \"Nails\") filed for Chapter 11 bankruptcy and all about his financial woes","og_url":"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/","og_site_name":"Bankruptcy Attorney in Brooklyn, New York | Rosenberg Musso Weiner","article_published_time":"2009-07-13T14:06:13+00:00","article_modified_time":"2019-05-07T03:33:37+00:00","og_image":[{"url":"https:\/\/nybankruptcy.net\/main\/wp-content\/uploads\/2009\/07\/ldykstra.jpg"}],"author":"Matt Leichter","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Matt Leichter","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/#article","isPartOf":{"@id":"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/"},"author":{"name":"Matt Leichter","@id":"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/75d08d648836eaa13b64bf21273bf4e7"},"headline":"Why did Lenny Dykstra file for Chapter 11?","datePublished":"2009-07-13T14:06:13+00:00","dateModified":"2019-05-07T03:33:37+00:00","mainEntityOfPage":{"@id":"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/"},"wordCount":589,"commentCount":0,"publisher":{"@id":"https:\/\/nybankruptcy.net\/main\/#organization"},"keywords":["Brooklyn Bankruptcy","Celebrity Bankruptcy","Chapter 11","Chapter 13","Chapter 7","New York Bankruptcy"],"articleSection":["Bankruptcy","Chapter 13 Bankruptcy","Chapter 7 Bankruptcy","Debt","Foreclosure","Means Test"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/","url":"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/","name":"Why did Lenny Dykstra file for Chapter 11 Bankruptcy Lawyer Brooklyn NY","isPartOf":{"@id":"https:\/\/nybankruptcy.net\/main\/#website"},"datePublished":"2009-07-13T14:06:13+00:00","dateModified":"2019-05-07T03:33:37+00:00","description":"You've probably heard by now that former New York Met star Lenny Dykstra (aka \"Nails\") filed for Chapter 11 bankruptcy and all about his financial woes","breadcrumb":{"@id":"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/nybankruptcy.net\/main\/why-did-lenny-dykstra-file-for-chapter-11\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/nybankruptcy.net\/main\/"},{"@type":"ListItem","position":2,"name":"Why did Lenny Dykstra file for Chapter 11?"}]},{"@type":"WebSite","@id":"https:\/\/nybankruptcy.net\/main\/#website","url":"https:\/\/nybankruptcy.net\/main\/","name":"Bankruptcy Attorney in Brooklyn, New York | Rosenberg Musso Weiner","description":"","publisher":{"@id":"https:\/\/nybankruptcy.net\/main\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/nybankruptcy.net\/main\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/nybankruptcy.net\/main\/#organization","name":"Rosenberg, Musso & Weiner, LLP","url":"https:\/\/nybankruptcy.net\/main\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/nybankruptcy.net\/main\/#\/schema\/logo\/image\/","url":"https:\/\/nybankruptcy.net\/main\/wp-content\/uploads\/2018\/06\/logo.png","contentUrl":"https:\/\/nybankruptcy.net\/main\/wp-content\/uploads\/2018\/06\/logo.png","width":124,"height":108,"caption":"Rosenberg, Musso & Weiner, LLP"},"image":{"@id":"https:\/\/nybankruptcy.net\/main\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/75d08d648836eaa13b64bf21273bf4e7","name":"Matt Leichter","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/bd20b564e1f526a569ac8b1fc9ef74db?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/bd20b564e1f526a569ac8b1fc9ef74db?s=96&d=mm&r=g","caption":"Matt Leichter"},"url":"https:\/\/nybankruptcy.net\/main\/author\/mleichter\/"}]}},"_links":{"self":[{"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/posts\/165"}],"collection":[{"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/comments?post=165"}],"version-history":[{"count":6,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/posts\/165\/revisions"}],"predecessor-version":[{"id":9942,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/posts\/165\/revisions\/9942"}],"wp:attachment":[{"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/media?parent=165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/categories?post=165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/tags?post=165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}